By Avinash P (Reuters) -The UK's FTSE 100 closed at an all-time high on Tuesday, lifted by a jump in HSBC's shares after the lender boosted its income outlook, while investors awaited a slew of big-
UK's FTSE 100 touches new peak as HSBC gains
By Avinash P
(Reuters) -The UK's FTSE 100 closed at an all-time high on Tuesday, lifted by a jump in HSBC's shares after the lender boosted its income outlook, while investors awaited a slew of big-ticket events later in the week.
The blue-chip-focused FTSE 100 rose 0.4% to a closing peak of 9,696.74 points. The UK's mid-cap FTSE 250 index was down 0.1%.
HSBC rose 4.6%, posting its biggest percentage gain in six months, after the lending giant boosted its income outlook and promised to shift into growth mode with its takeover of Hang Seng Bank in Hong Kong, despite a huge drop in third-quarter profit due to $1.4 billion in legal charges.
"Net interest income on the loan book remains strong, loan losses are limited and profits are healthy, which means there is plenty of scope for further cash returns – providing there is no unexpected economic slowdown," AJ Bell investment director Russ Mould said.
Global stocks paused after their recent rally as optimism around a U.S.-China trade deal kept risk appetite supported. Investors are now looking ahead to earnings from Big Tech companies on Wall Street as well as rate decisions from several major central banks, including the Federal Reserve and the European Central Bank.
Closer to home, data showed UK retailers cut their prices in October, helped by the biggest drop for food in almost five years, offering support to households as well as the Bank of England and the government.
Finance minister Rachel Reeves has said she will use her budget to bring down the cost of living.
Among other stocks, Airtel Africa rose 16.4% to a record high after the telecoms company reported a rise in half-year revenue and declared an interim dividend.
Spirax Group rose 1.2% after UBS upgraded the valve maker's stock to "buy" from "neutral" while raising its target price to 10,500 pence from 7,500 pence.
(Reporting by Avinash P in Bengaluru; Editing by Leroy Leo and Sharon Singleton)
